The Ministry of Construction will not introduce new support measures due to the increase in the key rate

The Ministry of Construction of Russia does not plan to introduce new measures to support the industry after the increase in the key rate by the Central Bank, said the Minister of Construction, Housing and Communal Services Irek Fayzullin, writes TASS.

“We were in a mode where the rate was higher in 2022. Therefore, <...> we are still working on mortgage programs, we see the implementation before July 1, 2024. We have time to find an effective solution to ensure the implementation of the national project “Housing and a comfortable urban environment,” the minister said at the All-Russian forum of small towns and historical settlements “Small cities: the backbone of a large country”.

Fayzullin added that the Ministry of Construction, the government and the financial institution DOM.RF work out possible scenarios for the development of the situation in the construction industry.

On July 21, the Board of Directors of the Central Bank raised the key rate by 1 percentage point, to 8.5%, for the first time since September 2022. The last time the Central Bank raised the rate to 20% was in the crisis February 2022, and since autumn the rate has been at the level of 7.5%.

After the decision of the regulator, Elvira Nabiullina, chairman of the Central Bank, admitted that the bank could continue increasing the key rate at the next meetings of the board of directors. She specified that the decision to increase will depend on the extent to which the incoming data “will influence our assessment of the development of the situation and the balance of risks to achieve the inflation target near 4% in 2024.”